Employee Status Is Always Better Than Independent Contractor Status for a Taxpayer

question 173

True/False

Employee status is always better than independent contractor status for a taxpayer because the employee is responsible for paying the employee portion of the FICA taxes.

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Definitions:

Cash Increase

An increase in a company's cash flow, resulting from its operational, investing, or financial activities.

Cash Cycle

The duration between the initial cash outlay for the purchase of inventory and the collection of cash from customers from sales, essentially measuring the liquidity efficiency of a company.

Purchasing Inventory

The process of acquiring goods and materials that a business sells or uses in its production process, an essential component of supply chain management.

Fixed Asset Sale

The process of selling long-term assets, such as property, plant, and equipment, for cash or other compensation.